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By Narelle Davidson

How much risk is your venue prepared to adopt?  This is a great question to ask when assessing risk appetite.

It is important to take the time and understand your greatest risks and there is no time like now.  The Allianz Risk Barometer Report 2017 includes some interesting content on business risk. Page 18 of the Risk Barometer Report 2017 lists the top 10 most important business risks in the Asia-Pacific region as:

  1. Business interruption and supply chain 56%
  2. Market developments 55%
  3. Natural catastrophes 36%
  4. Macroeconomic developments 35%
  5. Cyber incident 32%
  6. Loss of reputation or brand value 26%
  7. Changes in legislation and regulation 25%
  8. Fire, explosion 20%
  9. Talent shortage, ageing workforce 14%
  10. Political risks 12%

Interesting that legislation change or regulation continues to remain in the top 10 risks; globally it sits at number 5 – 25%.  Let’s have a look what is happening locally.

WHS Risk

Fire and explosion risks rate highly, both globally and nationally, it is also a business interruption risk that has the potential for high-cost (life and financial).  There were 26 matters referred to Queensland Fire & Emergency Service as outcomes of investigation and inspections conducted on licensed premises in 2015-16.  The penalties associated with non-compliance and category 1, 2 and 3 WHS offences are considerable.

How long is it since you visited your Fire & Emergency Management Plan? 

Have you considered other emergencies like violent and aggressive patrons, or an “active shooter”,  floods and severe weather?

Liquor & Gaming risk

The recently released OLGR Annual Statistical Report 2015-2016 shows us that there was an increase in compliance inspections over three years across the state of Queensland by 20%, along with an increase of compliance investigations by 45%.   From a total of 13376 inspections and investigations conducted, 5239 of these resulted in no breach detected (approximately 39%).

Risk is also about opportunity.  Welcome news for some that the proposed 1 am lock-outs (from 1 July 2017) in venues located in Safe Night Precincts will no longer proceed.

Food Safety risk

The Gold Coast City Council has launched a “star rating” program, similar to that as implemented by the Brisbane City Council.  The program will see food businesses on the GC issued with “star ratings”.  Star ratings are issued based on an assessment of the food safety management practices in place.  The rating system is set to be in place by November 2017.

How many stars would your food premise score?

Food allergies are becoming increasingly common.  Food businesses are encouraged to have procedures or management plans in place to deal with food allergy intolerance (FAI).

Does your food safety program include FAI procedures?

AML/CTF risk

AUSTRAC have recently created a series of fact sheets aimed to dispel some myths about money laundering.  Those fact sheets may have been emailed to the AML/CTF Compliance Officer. Have them check their email box and take a look at this recent case study involving gambling services.  Consider using them as training tools with the team.

The 2016 AUSTRAC reporting period ended on 31 December 2016 and the annual compliance report is due to be lodged by 31 March 2017.

Have you lodged your 2016 annual compliance report?

What’s next?

All of the above have potential to cause reputational loss and impact on brand value.

Governance, risk and compliance are serious stuff.  This is a good reminder to consider governance, compliance and risk along with the systems that are in place to manage them. Compliance doesn’t need to be hard work; however, it does require a consistent and realistic approach.

Does your venue have a compliance and risk policy?  Are compliance and risk being managed by informed decision making?

Compliance is a function aimed to help business, not hinder. Having a compliance manager who understands the big picture is a great start.  Implementing a compliance and risk management system can add value to your business and help you manage compliance and risk appetite.

How hungry are you?

About narelle-davidson
Narelle Davidson has been involved in the hospitality industry for 20 years and has experience working with clubs and hotels in New South Wales & Queensland. Narelle has progressed through varying roles from front line customer service, gaming promotion co-ordination, self-employment, hotel management, training, consulting and compliance. In most recent years, Narelle has focussed on compliance programs and solutions for hospitality venues. With practical understanding of both NSW & Queensland legislative requirements Narelle is able to rationalise and provide the expertise required to facilitate effective regulatory and operational compliance frameworks. Narelle is a current member of the Governance, Risk and Compliance Institute (GRCI).
What is your compliance risk appetite?